1Q FY2017 Results Presentation - listed companysoilbuildreit.listedcompany.com › newsroom ›...

1Q FY2017 Results

Presentation

12 April 2017

2

This presentation should be read in conjunction with the financial statements of Soilbuild Business Space

REIT for the first quarter from 1 January 2017 to 31 March 2017 (hereinafter referred to 1Q FY2017).

This presentation is for information only and does not constitute an offer or solicitation of an offer to

subscribe for, acquire, purchase, dispose of or sell any units in Soilbuild Business Space REIT (“Soilbuild

REIT”, and units in Soilbuild REIT, “Units”) or any other securities or investment.

Nothing in this presentation should be construed as financial, investment, business, legal or tax advice and

you should consult your own independent professional advisors.

This presentation may contain forward-looking statements that involve risks, uncertainties and assumptions.

Future performance, outcomes and results may differ materially from those expressed in forward-looking

statements as a result of a number of risks, uncertainties and assumptions. You are cautioned not to place

undue reliance on these forward-looking statements, which are based on the current view of management

of future events.

The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of,

deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to

investment risks, including the possible loss of the principal amount invested.

Investors should note that they will have no right to request the Manager to redeem or purchase their Units

for so long as the Units are listed on Singapore Exchange Securities Trading Limited (the “SGX-ST”). It is

intended that holders of Units may only deal in their Units through trading on the SGX-ST. The listing of the

Units on the SGX-ST does not guarantee a liquid market for the Units.

The past performance of Soilbuild REIT is not indicative of the future performance of Soilbuild REIT.

Similarly, the past performance of SB REIT Management Pte. Ltd. (“Manager”) is not indicative of the future

performance of the Manager.

Disclaimer

3

Agenda

04 Key Highlights 06 1Q FY2017 Financial

Performance 12 Financial Position /

Capital Management

16 Portfolio Update 26 Market Update and

Outlook

Key Highlights

5

Key Highlights of 1Q FY2017

• Year-on-year (“y-o-y”) gross revenue grew to S$22.0 million and net property

income (“NPI”) rose by 11.7% to S$19.2 million.

• Distributable income increased 6.6% y-o-y to S$15.6 million from S$14.6

million in 1Q FY2016.

• Distribution per Unit (“DPU”) was 1.489 cents in 1Q FY2017 compared to

1.557 cents in 1Q FY2016, primarily due to payment of property management

(“PM”) and lease management (“LM”) fees in cash.

• Adjusted 1Q FY2017 DPU assuming payment of PM and LM fees in Units is

1.539 cents.

1Q FY2017

Results

• Weighted average all-in cost of debt is 3.37% p.a. as at 31 March 2017.

• Weighted average debt maturity stands at 2.6 years.

• Interest rate exposure is 86.5% fixed for a weighted average term of 1.7 years.

• Unencumbered investment properties in excess of S$883 million (71% of total

investment properties).

Corporate and Capital

Management

• Portfolio occupancy rate of 91.8% as at 31 March 2017.

• Weighted average lease expiry (by gross rental income) stands at 3.3 years.

• Close to 160,000 sq ft of new leases signed as at 31 March 2017.

• Successfully completed 100,000 sq ft of renewals and forward renewals.

Portfolio Update

Financial

Performance

1Q FY2017

7

1Q FY2017 Financial Results

Note:

(1) Non-tax deductible items comprise the Manager’s management fees payable in Units, rent free amortisation, the Trustee’s fees, amortisation of debt arrangement

and prepayment fees. (1QFY2016: Includes property management and lease management fees payable in Units and bank commitment fees.)

Assuming the 1Q FY2017 property management fees and lease management fees were payable in Units, non-tax deductible items would have been S$2,241k

(consistent with 1Q FY2016) and income available for distribution to Unitholders would have been S$16,097k (“adjusted distributable income”).

For the period from

1Q FY2017 1Q FY2016

Variance

1 January to 31 March

(S$’000)

Gross Revenue 21,985 20,142 9.2%

Less Property Expenses (2,772) (2,949) 6.0%

Net Property Income 19,213 17,193 11.7%

Interest Income 434 236 83.9%

Finance Expenses (3,926) (3,296) (19.1%)

Manager’s Fees (1,557) (1,461) (6.6%)

Trustee’s Fees (51) (50) (2.0%)

Other Trust Expenses (257) (254) (1.2%)

Net Income 13,856 12,368 12.0%

Add back Non-Tax Deductible Items(1) 1,717 2,241 (23.4%)

Distributable Income 15,573 14,609 6.6%

8

Distribution per Unit

1Q FY2017 vs 1Q FY2016

1Q FY2017 1Q FY2016 Variance

Distributable Income (S$’000) 15,573 14,609 6.6%

Distribution per Unit (“DPU”) (cents) 1.489 1.557 (4.4%)

Adjusted DPU (cents) 1.539(1) 1.557 (1.2%)

Annualised Distribution Yield 8.8%(2) 8.5%(3) 0.3%

Units in Issue(4) 1,045,532,628 938,010,400 11.5%

Note:

(1) Assuming property and lease management fees for 1Q FY2017 were payable in Units.

(2) Based on the closing price of S$0.675 as at 31 March 2017.

(3) Based on the closing price of S$0.730 as at 31 March 2016.

(4) Based on Units in issue as at 31 March.

9

1Q FY2017 Distribution

Distribution Timetable 1Q FY2017

Distribution Details 1Q FY2017

Distribution Period 1 January 2017 – 31 March 2017

Distribution Amount SGD 1.489 cents per unit

Last Day of Trading on “cum” Basis Tuesday, 18 April 2017

Ex-Date Wednesday, 19 April 2017

Books Closure Date Friday, 21 April 2017

Distribution Payment Date Thursday, 18 May 2017

10

Steady Growth Since IPO

Growing NPI

Stable DPU

6.9

13.7 14.2 14.0 14.2 14.9

15.8 16.7

17.8 17.5 17.2 17.3 17.3 18.9 19.2

5.0

10.0

15.0

20.0

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017

Net Property Income

(S$ million)

6.1

12.2 12.6 12.1 12.5 12.9 13.3 14.3

15.2 15.1 14.6 14.7 14.6

16.4 15.6

1.533 1.539

0.760

1.510 1.562 1.500 1.546 1.585 1.633 1.615 1.625 1.614 1.557 1.565

1.399

1.570

1.489

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017

Distributable Income Adjusted DPU Actual DPU

Distributable Income

(S$ million)

Actual DPU

(cents)

(1)

Note:

(1) The adjustment excludes the issuance of 94,353,672 new Units pursuant to the Preferential Offering and 1,528,571 new Units for the payment of acquisition fee at an issuance

price of S$0.63 per unit, as well as the revenue and associated borrowing costs relating to the acquisition of Bukit Batok Connection which was completed on 27 September 2016.

(2) Assuming property and lease management fees for 1Q FY2017 remained payable in Units, the adjusted DPU would have been 1.539 cents.

(2)

11

Steady Growth Since IPO

Cumulative DPU of 22.53 cents

Note:

(1) Based on closing price on last day of each quarter;

(2) Based on cumulative distribution per unit against IPO price of S$0.78.

(3) Based on annualised FY2017 DPU of 5.956 cents and Unit price of $0.675 as at 31 March 2017.

Source: Bloomberg

Price(1)

(S$)

Cumulative

DPU (cents)

Cumulative

Distribution

Returns(2) (%)

3Q 2013 0.745 0.760 0.97

4Q 2013 0.770 2.270 2.91

1Q 2014 0.780 3.832 4.91

2Q 2014 0.800 5.332 6.84

3Q 2014 0.795 6.878 8.82

4Q 2014 0.790 8.463 10.85

1Q 2015 0.810 10.096 12.94

2Q 2015 0.850 11.711 15.01

3Q 2015 0.805 13.336 17.1

4Q 2015 0.770 14.95 19.17

1Q 2016 0.730 16.507 21.16

2Q 2016 0.685 18.072 23.17

3Q 2016 0.700 19.471 24.96

4Q 2016 0.640 21.041 26.98

1Q 2017 0.675 22.530 28.88

Distribution Yield = 8.8%(3)

0.55

0.60

0.65

0.70

0.75

0.80

0.85

0.90

70

80

90

100

110

120

130

Au

g-1

3S

ep-1

3O

ct-

13

Nov-1

3D

ec-1

3Jan

-14

Fe

b-1

4M

ar-

14

Ap

r-14

Ma

y-1

4Jun

-14

Jul-

14

Au

g-1

4S

ep-1

4O

ct-

14

Nov-1

4D

ec-1

4Jan

-15

Fe

b-1

5M

ar-

15

Ap

r-15

Ma

y-1

5Jun

-15

Jul-

15

Au

g-1

5S

ep-1

5O

ct-

15

Nov-1

5D

ec-1

5Jan

-16

Fe

b-1

6M

ar-

16

Ap

r-16

Ma

y-1

6Jun

-16

Jul-

16

Au

g-1

6S

ep-1

6O

ct-

16

Nov-1

6D

ec-1

6Jan

-17

Fe

b-1

7M

ar-

17

FTSE ST Index FTSE ST REIT Index Soilbuild REIT Unit Price

Index Closing

price (S$)

Financial

Position / Capital

Management

13

1Q FY2017 Financial Results –

Statement of Financial Position

(S$’000) 31 March 2017 31 December 2016

Investment Properties 1,243,765 1,243,700

Other Assets 34,764 31,791

Total Assets 1,278,529 1,275,491

Borrowings 473,123 472,349

Other Liabilities 54,096 51,439

Net Assets 751,310 751,703

Units in Issue (‘000) 1,045,533 1,042,174

Net Asset Value per Unit (S$) 0.72 0.72

14

1) Soilbuild REIT is rated Baa3/negative by Moody’s.

Prudent Capital Management

3) Aggregate leverage of 37.5%(1) allows headroom

of S$52 million(2)

31 March 2017

Total Bank Financing Facilities S$230 million

Total Bank Debt Drawn Down S$225 million

Multicurrency Debt Issuance

Programme drawn down S$200 million

Interest-free Loan S$55 million

Unencumbered Investment Properties S$883 million

Secured leverage (3) 14.5%

Average All-in Interest Cost(4) 3.37% p.a.

Interest Coverage Ratio(5) 5.0x

Weighted Average Debt Maturity (1) 2.6 years

Notes:

(1) Includes interest free loan in relation to the Solaris upfront land premium.

(2) Based on target aggregate leverage of 40%.

(3) Secured Debt/Total Assets.

(4) Excludes interest-free loan.

(5) Computed based on 1Q FY2017 EBITDA/Net interest expense (Finance expense – Interest

income).

2) Lengthened weighted average debt maturity and

fixed the interest rate for 86.5% of borrowings for a

weighted average term of 1.7 years(1).

No refinancing requirements till 2018

55

100

100

40

185

2017 2018 2019 2020 2021

S$'m

illio

ns

Bank Facility drawn down MTN Interest Free Loan

% of Debt

Maturing 32.3% 8.4% 38.5% 20.8%

15

Interest Rate Risk Management

Interest

Rate

Increase

Increase in

FY2017

finance

expense

(S$’000)

As a % of

Annualised

FY2017

Finance

Expenses

As a % of

Annualised

FY2017

Distributable

Income

Impact on

Annualised

FY2017 DPU

(in cents)

Increase in

FY2017 Weighted

Average

Borrowing Cost

0.25% 181 1.1% 0.3% 0.017 0.02%

0.50% 362 2.3% 0.6% 0.035 0.06%

0.75% 543 3.4% 0.9% 0.052 0.11%

1.00% 724 4.5% 1.2% 0.069 0.15%

Assuming no re-financing and entry into new interest rate swaps in FY2017:

Portfolio Update

17

Portfolio Overview

SEMBAWANG

JOO KOON

BOON LAY PIONEER

ONE-NORTH

BUONA VISTA

Sentosa

Jurong Island

Jurong Port

PSA Terminal

Tuas Port

(2022) Keppel

Terminal

CHANGI SIMEI

EXPO

CBD

BUKIT BATOK

Tellus Marine

NLA: 95,250 sq ft

Valuation: S$20.0 million

COS Printers

NLA: 312,375 sq ft


NK Ingredients

NLA: 203,468 sq ft


Loyang Way

Eightrium NLA: 177,286 sq ft

Valuation: S$101.0

million

Solaris

NLA: 441,533 sq ft


NLA: 377,776 sq ft


Bukit Batok

Connection

NLA: 1,240,583 sq ft


West Park BizCentral

NLA: 93,767 sq ft


Speedy-Tech BK Marine

NLA: 73,737 sq ft


NLA: 208,057 sq ft


KTL Offshore

NLA: 58,752 sq ft

Valuation: S$11.2

million

Tuas Connection NLA: 651,072 sq ft


Business Park

Properties

Industrial

Properties

Valuation(2) S$1,243.8 million

Total NLA 3.93 million sq ft

WALE (by GRI) 3.3 years

Occupancy 91.8%

Portfolio Summary(1)

Notes:

(1) Information as at 31 March 2017;

(2) Based on Knight Frank’s & Colliers’ valuations dated 31 December 2016 and capital expenditure in 1Q FY2017.

18

Long Land Lease Expiry

Property Acquisition Date Land Lease

Expiry Date

Valuation (S$’m)

(as at 31 Dec 2016)

Solaris 16-Aug-13 31-May-68 360.0

Eightrium 16-Aug-13 15-Feb-66 101.0

West Park BizCentral 16-Aug-13 31-Jul-68 306.0

Tuas Connection 16-Aug-13 30-Sep-50 122.0

NK Ingredients 15-Feb-13 30-Sep-46 62.0

COS Printers 19-Mar-13 31-Jul-42 11.2

Beng Kuang Marine 10-May-13 29-Oct-56 16.5

Tellus Marine (Phase 1)

Tellus Marine (Phase 2)

26-May-14

25-Nov-16 15-Feb-54 20.0

KTL Offshore 31-Oct-14 18-Jul-66 56.0

Speedy-Tech 23-Dec-14 30-Apr-50 25.0

72 Loyang Way 27-May-15 20-Mar-38 65.0

Bukit Batok Connection 27-Sep-16 25-Nov-42 99.0

Percentage of Unexpired Land Lease Term By Valuation

Long Land Lease Tenure of 43.5 Years (by valuation)

19.1% 14.8% 12.6%

53.5%

2027 - 2036 2037 - 2046 2047 - 2056 2057 - 2066 Beyond 2066

19

Portfolio Occupancy

97.4

100.0

100.0

97.9

86.3 86.3

93.0

100.0

92.3 90.7 92.9

99.7

94.8

89.6

91.8 92.7

90.1 89.5

80.0

85.0

90.0

95.0

100.0

3QFY2013

4QFY2013

1QFY2014

2QFY2014

3QFY2014

4QFY2014

1QFY2015

2QFY2015

3QFY2015

4QFY2015

1QFY2016

2QFY2016

3QFY2016

4QFY2016

1QFY2017

Occupancy (%)

Eightrium

TuasConnection

West ParkBizCentral

Portfolio

IndustrialAverage

3Q

2013

4Q

2013

1Q

2014

2Q

2014

3Q

2014

4Q

2014

1Q

2015

2Q

2015

3Q

2015

4Q

2015

1Q

2016

2Q

2016

3Q

2016

4Q

2016

1Q

2017

Eightrium 97.4% 98.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 97.9%

Tuas

Connection 100.0% 100.0% 100.0% 93.2% 100.0% 100.0% 100.0% 100.0% 93.5% 93.5% 86.3% 89.5% 86.3% 86.3% 93.0%

West Park

BizCentral 100.0% 100.0% 100.0% 99.8% 99.8% 100.0% 100.0% 99.3% 99.6% 94.2% 92.3% 82.7% 90.8% 90.7% 92.9%

Portfolio 99.8% 99.9% 100.0% 98.5% 99.9% 100.0% 100.0% 99.8% 98.7% 96.8% 94.8% 92.0% 94.8% 89.6% 91.8%(1)

Industrial

Average (2) 92.7% 91.9% 91.6% 90.7% 90.9% 90.9% 90.7% 91.0% 90.8% 90.6% 90.1% 89.4% 89.1% 89.5% N.A.

Notes: (1) Inclusive of 9.9% occupancy at 72 Loyang Way. (2) Source: JTC statistics as at 4Q 2016

20

Leasing Update

No. of Leases Area (sqft)

Avg. Gross Rent

before Renewal

Avg. Gross Rent

after Renewal Rental

Reversion ($ psf) ($ psf)

Renewal leases 3 73,744 $1.11(1) $1.15(1) 3.6%

New leases 12 156,067 - $1.52(2) -

Forward renewal

leases 2 27,309 $1.67(1) $1.57(1) (6.0%)

Total 17 257,120

Trade sector of leases signed as at 1Q FY2017

By Gross Rental Income

4.5%

5.6%

5.9%

6.1%

23.6%

25.7%

28.6%

Supply Chain Management, 3rd Party Logistics,Freight Forwarding

Marine Offshore

Oil & Gas

Information Technology

Others

Real Estate and Construction

Precision Engineering, Electrical and MachineryProducts

Note:

(1) The average gross rent includes solely industrial properties.

(2) The average gross rent includes both industrial and business park properties.

1Q FY2017

21

16.1% 16.0%

11.2% 22.5%

1.9% 1.4% 5.3% 4.8%

12.6%

27.3%

8.3% 8.5% 9.0%

26.1%

12.5%

38.5%

7.6% 8.1% 8.3%

25.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2017 2018 2019 2020 2021 >2021

KTL Offshore Expiry byGross Rental Income

KTL Offshore Expiry byNLA

Beng Kuang MarineExpiry by Gross RentalIncomeBeng Kuang MarineExpiry by NLA

Solaris Expiry by GrossRental Income

Solaris Expiry by NLA

Lease Expiry Profile ByGross Rental Income

Lease Expiry Profile ByNLA

Well Staggered Lease Expiry

WALE (by NLA) 3.4 years

7.6%

3.1%

1.5%

5.6%

4.7%

Solaris Master Lease Expiry (by GRI)

< Aug 2018

> Aug 2018

2019

2020

>2020

Note:

(1) Information as at 31 December 2016

(2) Portfolio occupancy is 89.6% as at 31 December 2016. 0.6% of leases (by NLA) expire on 31 December 2016.

WALE (by Gross Rental Income) 3.3 years

WALE of new leases which commenced in 1Q FY2017 was 5.0 years (by GRI)

WALE of new leases signed in 1Q FY2017 was 3.8 years (by GRI)

22

57% 30%

8% 5%

MNC

SME

SGX Listed Corporation

Government Agency

10.4%

11.2%

23.3%

20.7%

5.7% 1.1%

1.3%

1.8%

4.3%

2.2%

8.9%

9.1%

Eightrium @ Changi Business Park Tuas Connection

West Park BizCentral Solaris

NK Ingredients COS Printers

Beng Kuang Marine Tellus Marine

KTL Offshore Speedy-Tech

72 Loyang Way Bukit Batok Connection

45%

55%

Multi-Tenanted

Master Lease

Well diversified Portfolio

Portfolio Income Spread By Property

Balanced Portfolio with Growth Upside By Gross Rental Income

Diversified Tenant Base By Gross Rental Income

1Q FY2017

Gross

Revenue

114

tenants in

portfolio

1Q

FY2017

Note:


23

11.1%

2.3%

14.1%

10.9%

9.7% 8.8%

4.9%

4.4%

4.8%

4.0%

2.9%

10.6%

11.5%

Marine Offshore

Oil & Gas

Precision Engineering, Electrical and Machinery Products

Information Technology

Electronics

Chemicals

Government Agency

Publishing, Printing & Reproduction of Recorded Media

Fabricated Metal Products

Food Products & Beverages

Supply Chain Management, 3rd Party Logistics, Freight Forwarding

Real Estate and Construction

Others

Well diversified Portfolio

Well-spread Trade Sectors By Gross Rental Income

4.3%

2.8% 2.6% 1.8%

1.3% 0.3% 0.3%

KTL Offshore Tuas Connection West Park BizCentral Tellus Marine Beng Kuang Marine Solaris 72 Loyang Way

Diversified Exposure by Property – Marine Offshore and Oil & Gas By Gross Rental Income

Multi-Tenanted Master Lease

% of Monthly

Gross Rental

Income

Note:


24

Diverse Tenant Base

Top 10 tenants contribute 42.4%(1) of monthly gross rental income.

Note:

(1) Inclusive of underlying tenants in Solaris

9.1%

5.8%

4.9%

4.3%

3.9%

3.8%

3.3%

2.7%

2.4%

2.2%

SB (Westview) Investment Pte. Ltd.

NK Ingredients Pte Ltd

SPRING Singapore

KTL Offshore Pte Ltd

Mediatek Singapore Pte Ltd

Autodesk Asia Pte Ltd

Nestle Singapore (Pte) Ltd

John Wiley & Sons (Singapore) Pte Ltd

Dyson Operations Pte Ltd

Speedy-Tech

25

Rental Growth from Master Leases

Long-term Master Leases Lease Term from start of Master Lease Agreement

Fixed Annual Rental Escalation of Master Leases(1) Rental Revenue (S$ million)

2017 2018 2019

Bukit Batok Connection

Speedy-Tech

KTL Offshore

Tellus Marine

BK Marine

COS Printers

NK Ingredients

1.0% 3.0% 22.4 22.7 23.3

Master Lease Property Date of Acquisition Lease Term Lease Expiry

1 Solaris 16-Aug-13 5 Years 15-Aug-18

2 Beng Kuang Marine 10-May-13 7 Years 9-May-20

3 KTL Offshore 31-Oct-14 7 Years 25-Aug-21

4 COS Printers 19-Mar-13 10 Years 18-Mar-23

5 Bukit Batok Connection 27-Sep-16 7 Years 26-Sep-23

6 Speedy-Tech 23-Dec-14 10 Years 22-Dec-24

7 Tellus Marine 26-May-14 11.7 Years 16-Feb-26

8 NK Ingredients 15-Feb-13 15 Years 14-Feb-28

Note:

(1) Excluding Master Lease rental from Solaris

Market Update

and Outlook

27

Industrial Properties Profile

(4Q 2016 vs 3Q 2016) Multi-user Single-user Warehouse Business Park

Vacancy Rate (%) 0.2% 0.3% 0.6% 1.9%

Rental Index 0.5% 0.9% 0.2% 1.2%

95.7

93.4

92.2 91.7

105.9

104.0 101.8

100.9

96.4 95.4

91.2 91.0

100.0

103.9

104.4 104.2 105.4

0

5

10

15

20

25

30

35

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

110.0

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

Vacancy rate (%) Rental index

Multiple-User Factory Single-User Factory Warehouse Business Park

28

Industrial Space Supply

9.0 9.0 9.1 9.1 9.4 9.4 9.6 9.8 9.9 10.0 10.1 10.2 10.3 10.3 10.4 10.5 10.6

21.5 21.6 21.9 22.1 22.2 22.4 22.5 22.7 22.8 22.9 23.0 23.2 23.3 23.5 23.5 23.8 24.1

1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.7 1.8 1.8 1.8 1.9 2.0 2.1 2.1 2.1 7.4 7.4 7.5 7.5 7.7 7.9 8.2 8.3 8.4 8.5 8.6 8.7 8.9 9.1 9.3 9.4 9.5

4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016

Warehouse

BusinessPark

Single-userFactory

Multi-userFactory

Total Industrial Stock (‘million sq m)

Upcoming Supply in the Pipeline (‘million sq m)

0.55 0.44 0.45 0.07

0.97

0.28 0.20

0.21 0.06

0.92

0.10 0.07

0.05

0.03

0

500

1,000

1,500

2,000

2,500

2017 2018 2019 2020 2021

Business Park Warehouse Single-user factory Multiple-user factory2.44

0.84 0.72

0.33

39.4 39.5 40.0 40.2 40.9 41.3 41.9 42.4 42.8 43.2 43.5 43.9 44.4 44.9 45.3 45.8 46.3

29

The Year Ahead

Singapore’s Economy

• 2017 GDP growth estimates of 1.0% to 3.0%.

• Outlook for the construction, marine & offshore, retail and food services sectors continue to be sluggish.

• MTI expects the Singapore economy to ride on the improved momentum in the manufacturing sector in 2017.

• Purchasing Managers’ Index for March rose to 51.2, the strongest expansion since November 2014.

Industrial Property Sector

• According to Colliers’ Industrial Research, vacancy level as at end 2016 of close to 20% remained relatively elevated in 2017.

• Industrial-wide occupancy stands at 89.5% as at 4Q 2016 (JTC, 2016).

• Overall business parks rents in 2017 are expected to be flat.

• Rental expectations for industrial premises are expected to be lower.

Soilbuild REIT

• Completed close to 260,000 sqft of lease renewals, new leases and forward renewals for leases expiring in 2017.

• Balance 12.6% or 500,000 sq ft of the portfolio’s net lettable area is due for renewal for the remaining of 2017.

• The challenge remains to lease the entire space at 72 Loyang Way due to the subdued marine offshore and oil & gas sector.

THANK YOU

Key Contacts:

Lim Hui Hua Chief Financial Officer Tel: (65) 6415 5985

Email: [email protected]

Roy Teo Chief Executive Officer Tel: (65) 6415 5983

Email: [email protected]

1Q FY2017 Results Presentation - listed companysoilbuildreit.listedcompany.com › newsroom ›...

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